City closes on first phase of South City redevelopment

New town homes and garden-style apartments will soon be going up at the former Foote Homes public housing site.

On Feb. 28, the Memphis Housing Authority closed on the first phase of South City, the redevelopment of Foote Homes that is the cornerstone of the South City Choice Neighborhoods Initiative, said project manager Ellen Eubank.

In September 2015, the City of Memphis received a $29 million federal Choice Neighborhoods Initiative Implementation Grant, which aims to transform poverty-stricken neighborhoods into viable mixed-income communities.

The first phase of the project will include a mix of 114 two- and three-bedroom apartment units, the majority of which will be in town homes with some garden-style units, Eubank said. The apartments are projected to be completed by June 2019.

"There will be laundry space in each unit and surrounding green space as part of the development," Eubank said. "A community building is being constructed during phase II."

Phase II also includes 134 additional apartment units.

The approximately $32 million phase is being financed through a variety of sources including the federal Choice Neighborhood grant, the City of Memphis, lending from Chase Bank and tax credits through tax credit equity investor Royal Bank of Canada.

Forty-six of the units will be market rate; 13 units will be tax credit and 55 units will be either tax credit project-based vouchers or [Rental Assistance Demonstration] project-based vouchers – all of which will be affordable.